As I write this, high temperatures continue to blister much of the US with two named storms in the Gulf, and I feel like it’s so hot this summer how could it ever cool off enough to snow? I know from the past 40 years of doing this for a living, weather is never predictable more than a few days or even hours in advance and in our business we always plan for the worst and hope for the best. In the snow and ice control industry, planning for the worst is really hoping for the best — at least for us.

Ownership Changes and Consolidations

There are a lot of topics to cover and at the top of the list is the on-going consolidation of winter product raw material supply sources. There have been numerous notable acquisitions and mergers in our industry this year with more still to come. It’s no secret that Morton Salt, and moreover the parent company K+S Group of Kassel, Germany, have put Morton along with their US and South American salt holdings up for sale. Lots of rumors about who is on the list and who is favored, but until the fat lady sings we can only guess. K+S is heavily leveraged (€3.1B) and need to reduce debt. While winter road salt is a portion of Morton’s business, the warm winters have had negligible impact to their struggling bottom line. COVID-19 has energized some segments of their business. Generally, I believe that Morton’s markets are roughly 1/3rd Industrial, 1/3rd consumer, and 1/3rd highway and winter products. Industrial applications include chlor-alkali production which uses salt to produce chlorine and caustic soda as co-products. Anyone with a pool knows that they are either consuming much more disinfectants such as pool salt or more chlorine in this record hot summer. Reuters reported on August 4th that “Meritage Group LP, an investment firm for the family of famed hedge fund investor James Simons of Renaissance Technologies, has partnered with U.S. salt producer Kissner for its bid, the people said. Kissner is owned by buyout group Stone Canyon Industries, which bought Kissner for $2 billion in April. Private equity investors Advent International, American Securities and Cerberus Capital Management also made it to the second round of the bidding, they added.”

One of the premium deicing product manufacturers, Tetra, have closed their calcium chloride production plant in El Dorado, Ark. They produced liquid and flake calcium chloride in this facility and while it will have some effect regionally in some markets, it shouldn’t be precipitate shortages and panic buying from closing. They’ve struggled with quality in this plant since it was constructed and sources indicate that they took a write-down of $80 to $100 million on this facility which is just barely a decade old.

OXY in Ludington, Mich., is currently the only US-based calcium chloride production facility. Rumors swirl here too that they too are for sale, but that is unconfirmed and at this point only a rumor.

An investor group (Junction Capital Partners) lead by Rick Billings purchased Wilkinson Corp. of Mayville, Mich., in May of this year. Wilkinson solution mine calcium chloride. No formal announcement about intent going forward has been made, but this could be a new calcium chloride liquid and dry source as Billings has forty years in the development of calcium chloride products and has been part of two previous calcium chloride facility developments.

In April of this year, Stone Canyon Industries Holdings closed the purchase of Kissner Milling of Ontario Canada for $2.0 billion. Kissner is generally known in both bulk and packaged deicing products and they continue to grow their footprint in the US. Whether Stone Canyon is in the mix for any of these other acquisitions is anybody’s guess, but the potential is there.

As we watch these mergers and acquisitions, know that the governmental agencies (FTC/SEC) will have a lot to say about any potential monopolizing of supply and likely will force dissolution of areas where the buyer has competitive interests already. When K+S purchased International Salt, a few stockpiles were broken up and handed over to other companies for this very reason.

Road Salt

The warm winter last year left record levels of deicing raw materials on the ground unsold which will burden the inventory carrying costs and could result in attempts to hold pricing even though the markets are very long right now.

On the road salt front, imported product from North Africa and other locations continue to depress pricing where water delivery of the salt is possible. East Coast US is seeing further reductions of pricing in municipal bids which foretells of price wars. Morton is a big player in bulk salt in certain markets and if they do sell, depending on who the lucky buyer is expect to see the Securities and Exchange Commission take moves to not allow the buyer to gain a monopoly or geographical market advantage.

As the industry continues to search for the silver bullet of deicing that is inexpensive and has low environmental impact, know that increasing pressure is being brought on road salt. Its pretty hard to replace given the abundance of supply and low cost coupled with effective for making roads safer, however that comes at a cost of chloride attack on metals and electrical systems and damage to infrastructure such as bridges and tunnels as well as the vehicles. Road salt pollution into drinking water and surface waters is still very much an issue, but road salt holds the high ground in deicing due to cost and effectiveness. While many additives have been tested and are used to enhance the performance and lower the corrosion of salt, we have yet to overcome the problems with one product.

At this time, there continues to be plenty of road salt in the marketplace. Obviously, a hard winter in specific geographies can deplete even the most robust inventories.

Premium Deicing Products

Not much to report here as inventories continue to be very strong in both calcium chloride and magnesium chloride. The closure of Tetra’s calcium plant will likely have minimal negative effect in deicing as that plant was largely intended to support the oil industry who use calcium chloride as a completion fluid. We have seen a few more offshore companies attempt to enter the US market for chlorides and so far, it’s not been an easy go as packaging and quality have struggled to meet the US standards. New production in Africa and India will attempt to compete in the US market in the coming year adding to an already strong position by China on these products.

New Products

Many companies and inventors continue to search for new winter products with less adverse impact on all fronts; environmental; infrastructure; vehicles. We have lots of smart people working on this but to date, no silver bullet has emerged. To this end, we too have been working on and testing a fiber based deicing product for the past few years which is 100% bio-renewable, lower cost than road salt, and, it’s 99% biodegradable. The jury is still out on our new FiberMelt product but we are hopeful as it meets two of the criteria; its non-corrosive and bio-renewable/biodegradable. FiberMelt is a fiber that is infused with a very small amount of a proprietary liquid to help the fiber adhere to the winter surface. While this is not going to be a straight across replacement for salt in all locations, it does have distinct advantages.

As is always the case, the weather is key to how the winter will go for our industry this season. Inventories are at nearly record level highs and most are prepared for what comes at least in the initial phase of winter. I do worry about the potential for record lake-effect snows in the areas that normally see it, and similarly the Eastern seaboard may have ocean effect snows if the temperatures set up inland to freeze the moisture coming off the sea. We’ve seen regional snow patterns that quickly deplete inventories so keep your eyes on supplies if things start cranking up, and keep your inventories full in the early part of winter to be assured you’ll have enough to make it the whole season.

Mergers and acquisitions will continue to change the supply sources of the professional snow and ice management industry and we the consumers and snow fighters are only observers in this context and will wait to see what changes may affect us.

Robert S. English is President of Chemical Solutions Inc. and is a regular Snow Magazine contributor.

Despite Winter 2019-20’s challenging business climate, we received a record number of submissions for this year’s list of top performing companies. Here’s a little background on how we collected and compiled the 2020 Top 100 list.

As early as mid-March, notices began going out to the previous year’s Top 100 companies to begin compiling their data and to head to our online form to submit their total winter revenue numbers. At the same time, we broadcast to the rest of the snow community to total and submit their winter revenue figures, as well.

This process remained open until the end of June. At the conclusion of the submission process the numbers were tallied and ranked. For those companies reporting identical revenue figures, they share the higher ranking. In addition, after much debate, the decision was made to NOT print companies’ winter-revenue figures. Instead, we employed a system that places companies within a revenue bracket broken down in a logical ranking fashion for the purposes of scale. Winter revenue figures were used solely for the purpose of ranking submitting companies from 1 to 100. For more information on the thought process that went into compiling and presenting this year’s Top 100 List, please see this month’s Editor’s Note on page 6.

– Mike Zawacki, Editor

Nationwide, the COVID-19 threat has not subsided, however, most businesses – including those offering snow and ice management services – have moved forward the best they can in preparation for Winter 2020-21. What sort of impact has the pandemic had on contractors seeking ISO certification?

Probably the biggest impact to the snow and ice management industry would be the sense of caution and the fear of the unknown. We can’t gather face-to-face to talk or meet in groups. Most industry summits/conferences/seminars have been postponed, cancelled or held in a virtual setting. However, the ability to meet in person is so resourceful and needed.

Is this a good time to seek ISO certification and why?

Of course, it is a good time for snow professionals to earn their ISO certification. As the pandemic appeared to be weakening this past spring, by early June I started receiving calls from snow professionals with downtime asking questions about becoming certified and getting ready for the upcoming season.

For those contractors seeking ISO certification, how have you been able to assist them over the recent months? Please describe how the process works if you’re forced to do it remotely.

I didn’t approach it as being “forced,” per se. The first thing I did was call my friend and industry leader, Jim Anderson, and asked if I could offer to certify and audit remotely, knowing I had clients booked during the pandemic. As you know, Jim steered the ASCA team on writing the Industry Standards for the professional snow and ice management industry. He thought it was a great idea, I also checked with Smithers, who is the third-party registrar, and then with another business associate, Aaron Birdseye, who is an independent contractor in the IT and surveillance profession for his advise on which secure video conferencing that would be the most appropriate for this type professional meeting. The process runs very smoothly, just like I am sitting in a client’s conference room. I ask my questions, all documents are safely uploaded to me, and it saves the client money. And I have been offering a $500 COVID discount to all clients this year.

Has the pandemic added any additional challenges to those contractors pursuing ISO certification? For example, have protective, anti-coronavirus measures been added to the processes and procedures that need to be documented?

I have not encountered any new challenges. I haven’t met new contractors face to face and shook hands with them, but we talk on the phone and video conference. As far as adding anti-coronavirus measures or any new safety measures to processes and procedures, that is a plus for any client considering to sign with an ISO certified snow professional rather than one that is not certified. Being ISO certified assures the client they are getting exactly what was stated, written and then carried out by the contractor. Health and wellness are very important policies that contractors initiate and set guidelines for their snow employees.

You’ve been offering your service to the professional snow and ice management industry for some time now. During your tenure, as the ISO process and the value of certification has become better understood and realized, how has your role in assisting companies changed or evolved? For example, how has the focus or the topics of your consulting with contractors changed?

My role in the snow industry sure has become better understood with each new client. I speak at industry forums, write articles and have been invited on to speak about ISO on industry podcasts. The more contractors that understand the importance of certification and share the olive branch the better the industry becomes. Snow contractors don’t just push snow, they are first responders of safety to their communities. And they are a very tough breed who won’t stop or give up until the job is completed correctly.

I’m a contractor considering ISO certification, what are the minimum criteria about my operation that I need to meet or have a handle on before I reach out to a professional like yourself for assistance? Or, should reaching out to you be the first step? And if so, why?

One should have basic knowledge of Industry Standards. Industry certifications help, as well as work experience and having seasoned professionals to perform the work outlined in winter service contacts. The more experience and knowledge in any profession one holds will help you succeed when seeking ISO certification.

From your experience, what is the most misunderstood aspect about ISO certification and why?

This topic always comes up at industry forums and conversations. A contractor cannot lose their business or employees if they answer a question wrong. There are no wrong answers. When I conduct an audit, I ask questions based on how a contractor runs their business. I do not tell any contractor how to run their business. The contractor tells me what they do in keeping with industry guidelines and that is how I write their quality manual.

Snow and ice management companies that were some of the initial adopters of ISO certification have now begun or are going through the renewal process. Do you assist in the renew process? If so, how have their needs changed as they pursue renewal?

I assist in all aspects of ISO certification and renewal. This includes: review of documents, procedures, maps, training, incident reporting, inspections and updating the contractor on any changes.

Due to the challenges and obstacles presented by the COVID-19 pandemic, the Accredited Snow Contractors Association (ASCA) is taking its 2020 Executive Summit to the digital realm.

“We’ve established the annual Executive Summit as the leading educational and networking conference serving business leaders in the snow and ice management industry,” says ASCA Executive Director Kevin Gilbride. “The pandemic’s persistence created obstacles for snow contractors to attend and enjoy this year’s event. Therefore, we made the decision to continue to serve the industry by providing this high-end education, and the digital venue allows us to bring these great speakers and online networking event to a wider, more inclusive industry group of snow professionals.”

2020 Executive Summit Virtual takes place online Sept. 17 & 18 and features educational seminars presented by thought leaders from the professional management and snow and ice industries. This year’s keynote lineup includes:

Jim Canfield

President, CEO Tools by Aprio

Jim Canfield is President of CEO Tools by Aprio. CEO Tools provides winning strategies and business performance tools that empower CEOs to drive profitable growth. Jim brings a unique blend of past experience, including extensive learning in leadership theory and practice as well as “been there, done that” practical experience running several companies.

Tom Gimbel

Founder/CEO, LaSalle Network

Tom Gimbel is the founder and CEO of LaSalle Network, a staffing, recruiting and culture firm headquartered in Chicago. LaSalle has been named to the Inc. 5000 list of fastest-growing companies for 12 years, Fortune’s “Best Companies to Work for in Chicago” and “Best Medium Workplaces,” Forbes’ “Best Professional Recruiting Firms’” and to Inc. Magazine’s “Best Workplaces” list.

John Ward

Business Coach, Business Traction Center

For more than 20 years John Ward has been helping entrepreneurs get more of what they want from their business. After a 10-year corporate career, John joined the leadership team of a family owned business and helped to grow that company from a $20 million regional company to a $150 million state-wide distributor. Recruited to assume the helm as President of a struggling retail chain, John successfully engineered a turnaround that brought the company back to profitability within a year and then oversaw double digit growth for the next four years. Following that assignment, John formed his own consulting, training and development company and with a partner grew that into a national organization helping companies across the country to dramatically improve performance through better management, focus and accountability. Today John focuses all his energy on helping entrepreneurs to clarify, simplify and achieve their vision by implementing the Entrepreneurial Operating System®.

The virtual conference will also have presentations from industry friends, including Josh Ferguson, Employment Law and the Pandemic; Joe Kujawa, Better Numbers Through Benchmarking; Ron Eckman, Brine and Liquid Deicing Best Practices; and Michael Moncoda, State of Insurance.

Lastly, conference attendees have the opportunity to earn continuing education credit that can be applied toward the renewal of their ASCA-C certification.

In addition to the educational program, the ASCA is planning a unique networking event to connect attendees with one another and encourage new professional connections with colleagues from throughout the industry.

“Networking is a hallmark of Executive Summit,” Gilbride says. “The digital environment allows us to continue this tradition through our Birds of a Feather networking session, which gives attendees the opportunity to meet over a variety of industry-related topics in an online environment.”

The global pandemic has impacted every business operation, and as such, business leaders have had to find new ways to work around and through these challenges, Gilbride says. Finding a way to bring the 2020 Executive Summit experience to the professional snow and ice management community is one of those challenges the ASCA has had to troubleshoot.

“Is this the most ideal scenario? Certainly not,” Gilbride says. “We would all like to be together, face-to-face, at a resort destination, like we have for more than a decade. However, the pandemic has taught us all that we need to not only be quick on our feet to adapt to new challenges, but also that we can’t give up or relent in the face of opposition. We’re pursuing Executive Summit – even in a digital format – as a way to defy the pandemic and to retain some semblance of normalcy. We can do many things online that we’ve done in year’s past in person to make the very best out of a valuable and professionally enriching two-day opportunity.”

For more information and to register, go to ascaexecutivesummit.com